Overview
What this article covers
- 01What happens in the first week after contracts are signed
- 02What gets checked during due diligence and finance approval
- 03What needs to be ready before settlement day
- 04What is deducted from the sale proceeds and what the buyer pays
- 05WA-specific rules including PEXA, penalty interest, and transfer duty
The Settlement Timeline
Typical WA settlement runs 42 to 60 days, though contracts vary. Many residential sales sit in this range, some set shorter 30-day terms, and off-the-plan or construction contracts can run to 90 days or beyond.
Phase 1
Pre-settlement setup
Days 1-7 after contract signing
What to do first
- Engage your settlement agent or solicitor.
- Confirm the deposit, usually 10% of the purchase price, is held in a licensed trust account.
- Organise building and pest inspections if required.
- Submit finance documents if the contract is subject to finance.
- Review the signed contract and all deadlines carefully.
Practical tip
Get the settlement agent involved immediately. They can start title searches and document preparation while you deal with inspections, finance, and moving logistics.
Phase 2
Due diligence and verification
Usually days 8-21
Property checks
- Building inspection
- Pest inspection
- Title search and ownership verification
- Strata records if applicable
Financial checks
- Loan approval confirmation
- Valuation by the lender
- Settlement funds calculation
- Transfer duty assessment where relevant
Legal review
- Contract compliance review
- Special condition tracking
- Disclosure verification
- Settlement statement preparation
Phase 3
Final preparation
Usually days 22-35
What should be ready
- Settlement statement reviewed and approved
- Bank transfer or cheque arrangements confirmed
- Insurance active from the correct date
- Final inspection arranged
How to stay on top of it
- Track every task and deadline in one place.
- Set reminders for finance and inspection dates.
- Keep contact details for your bank, settlement agent, and agent handy.
Phase 4
Settlement day
The day the property officially changes hands
- Final inspection. The buyer checks that the property condition matches the contract.
- Document and funds confirmation. The settlement agents and banks confirm everything is ready.
- Settlement exchange. Money is transferred, documents are lodged, and ownership is updated.
- Keys are handed over. Once settlement is complete, the property has officially changed hands.
What You Are Responsible For
The settlement agent handles the legal transfer. Everything else is split between the seller and the buyer. Knowing your list prevents the most common sources of delay and dispute.
Seller
Your responsibilities
- Keep the property in the contracted condition until settlement. No removing fixtures, damaging walls, or taking agreed chattels.
- Complete any agreed repairs before settlement day.
- Continue paying your mortgage, rates, and insurance until settlement completes.
- Contact your lender to arrange mortgage discharge. Allow at least 10 business days.
- Vacate the property by the agreed handover time on settlement day.
- Leave all agreed chattels in place: appliances, window furnishings, remotes, and keys.
- Provide alarm codes, garage remotes, and any manuals on settlement day.
- Review and approve the settlement statement at least 3 days before settlement.
Buyer
Your responsibilities
- Obtain final loan approval (not just pre-approval) before the finance deadline in the contract.
- Arrange building insurance from the date the contract becomes unconditional. In WA, risk passes to the buyer at that point.
- Provide settlement funds to the settlement agent's trust account, usually 24 to 48 hours before settlement.
- Pay transfer duty from your own funds. This is separate from the purchase price and paid on settlement day.
- Organise the pre-settlement inspection 1 to 2 days before settlement.
- Raise any inspection issues immediately and before settlement completes. Your contract-based claims are limited once the property changes hands.
- Update your address with the council and utilities after settlement.
WA-Specific Settlement Rules
WA has its own legal settings and paperwork expectations.
WA Rule
Disclosure and contract obligations
- Known defects and material facts still matter even in a buyer-beware system.
- Building and pest rights depend on the clauses negotiated into the contract.
- Strata property sales usually require extra records and disclosures.
WA Rule
Settlement process expectations
- A licensed settlement agent or solicitor handles the legal transfer, not the real estate agent.
- Deposits are held in a licensed trust account until settlement completes.
- Settlement is governed by the Transfer of Land Act 1893 and Settlement Agents Act 1981.
WA Rule
Electronic settlement via PEXA
- PEXA is the digital platform where buyer and seller representatives exchange documents and funds on settlement day.
- Both parties see the same workspace: title transfer, mortgage discharge, and fund release happen simultaneously.
- Not mandatory in WA, but now used for the vast majority of residential settlements.
- Once PEXA settlement completes, Landgate updates the title register, often the same day.
WA Rule
Settlement delay and penalty interest
- If either party fails to settle on the scheduled date, penalty interest applies at 10% per annum on the outstanding amount.
- The party ready to settle can issue a Notice to Complete, giving the breaching party 3 business days to act.
- If settlement still does not occur, the non-breaching party can rescind the contract and claim damages.
- The non-breaching party may also choose to proceed and claim the accrued interest instead.
What Gets Deducted at Settlement
Your settlement agent prepares a settlement statement before the day. That document shows the money coming in, every deduction, and what balance lands in your account.
Costs
Common deductions from sale proceeds
| Item | Notes | Typical range |
|---|---|---|
| Agent fee | Commission or fixed fee depending on your agreement | Deducted from proceeds |
| Settlement agent fee | Conveyancer or solicitor handling the transfer | $800-$1,500 |
| Mortgage discharge | Bank fee to release the title | $150-$400 |
| Rate adjustments | Council and water rates pro-rated to the settlement date | Varies |
Things That Commonly Go Wrong
Most problems are avoidable. Here is what catches sellers and buyers off guard, and what to do instead.
Sellers
What trips sellers up
- Leaving the mortgage discharge too late. Banks need at least 10 business days to prepare discharge documents. If you contact them the week before settlement, your agent cannot proceed on time.
- Removing fixtures or agreed chattels before settlement. Anything listed in the contract (appliances, blinds, light fittings) must stay. Disputes over missing items can stop settlement on the day.
- Not having the property ready for the final inspection. If the buyer finds damage or incomplete repairs during their inspection, they can delay settlement until it is resolved. Deal with agreed repairs well before the date.
- Ignoring the settlement statement until the last minute. Errors in adjustments or fee calculations need to be caught a few days before settlement, not on the morning of it.
Buyers
What trips buyers up
- Treating pre-approval as guaranteed finance. Pre-approval is not a binding commitment from the bank. Final approval can still be declined or delayed. Do not make moving arrangements until formal approval is confirmed.
- Not having funds ready in time. Your settlement agent needs cleared funds in their trust account 24 to 48 hours before settlement. Last-minute bank transfers regularly cause settlement to fail on the day.
- Skipping the pre-settlement inspection. If you do not inspect before settlement, you lose your practical ability to raise condition issues. Once the property is yours, the seller has no further obligation.
- Leaving insurance too late. In WA, risk passes to the buyer when the contract becomes unconditional, not at settlement. If something happens to the property in between, you may bear the loss.
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